TITLE 40.SOCIAL SERVICES AND ASSISTANCE

Part 1. TEXAS DEPARTMENT OF HUMAN SERVICES

Chapter 51. WAIVER PROGRAM FOR MEDICALLY DEPENDENT CHILDREN

The Texas Department of Human Services (DHS) proposes amendments to §51.1, concerning purpose, §51.2, concerning definitions, §51.3, concerning participant eligibility criteria, §51.4, concerning location of medically dependent children program (MDCP) waiver service delivery, §51.5, concerning waiver services, §51.7, concerning cost controls and cost savings, and §51.31, concerning deinstitutionalization due to closure of facility, and the repeal of §51.6, concerning provider base and reimbursement methodology, in its Waiver Program for Medically Dependent Children chapter. The purpose of the amendments and the repeal is to complete the transfer of Chapter 51 from the Texas Department of Health (TDH) to DHS by correcting references within the rule. The proposal also repeals §51.6 and places all material not directly related to rate analysis and determination in appropriate areas of the chapter. The Texas Health and Human Services Commission (HHSC) will assume responsibility for rate analysis and determination.

James R. Hine, Commissioner, has determined that for the first five-year period the proposed sections will be in effect there will be no fiscal implications for state and local government as a result of enforcing or administering the sections.

Mr. Hine also has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of adoption of the proposed rules will be to eliminate outdated references within the rule and to repeal the section that deals with reimbursement rates. There will be no effect on small or micro businesses as a result of enforcing or administering the sections because the changes are technical in nature. There is also no probable effect on local employment in geographic areas affected by these sections.

Questions about the content of this proposal may be directed to Lori Roberts at (512) 438- 5391 in DHS's Long Term Care/Community Care Program. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-156, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register .

Under §2007.003(b) of the Texas Government Code, the department has determined that Chapter 2007 of the Government Code does not apply to these rules. Accordingly, the department is not required to complete a takings impact assessment regarding these rules.

40 TAC §§51.1 - 51.5, 51.7, 51.31

The amendments are proposed under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The amendments implement the Human Resources Code, §§22.001-22.030 and §§32.001-32.042.

§51.1.Purpose.

This chapter implements the Medically Dependent Children Program (MDCP), a statewide Medicaid waiver program that serves [ serving ] a limited number of children . MDCP [ that ] is approved by the Secretary, Department of Health and Human Services, as authorized by the Social Security Act, §1915(c). The MDCP focuses on both prevention of nursing facility institutionalization and the deinstitutionalization of children in those settings under 21 years of age through a thoughtful, collaborative planning process and the prudent use [ utilization ] of available resources. [ The ] MDCP depends upon involved parents and informed professionals to provide the diverse perspectives and information required to ensure the development of a satisfactory Individual Plan of Care (IPC) [ individual plan of care ] for each participant and the continued operation of [ the ] MDCP.

§51.2.Definitions.

The following words and terms, when used in this chapter, [ shall ] have the following meanings, unless the context clearly indicates otherwise.

(1) Adaptive aid--A device necessary to treat, rehabilitate, prevent, or compensate for conditions that result [ resulting ] in disability or loss of function. Adaptive aids enable people to perform the activities of daily living or control the environment in which they live.

(2) (No change.)

(3) Applicant--An individual whose eligibility for waiver services is in the process of being determined. An individual becomes an applicant when he [ he/she ] is next in line to fill a vacant position in the waiver program, a vacancy exists, the Texas Department of Human Services (DHS) [ Texas Department of Health (department) ] has approved the filling of the vacancy, DHS [ the department ] has notified the individual, and the individual has submitted the required application materials to DHS [ the department ] within a specified time frame.

(4) Basic child care--Watchful attention and supervision by a designated provider in the absence of the primary caregiver during those hours when the caregiver is at work, in job training [ job-training ], or at school. Basic child care may be provided in a variety of settings, including a licensed day care center, a registered family home, the child's home, an after-school setting, or other usual child care setting. Basic child care is a service that is separate and distinct from educational services provided at a school where attendance is mandated and the primary focus of the institution is the accomplishment of specified academic goals. Basic child care is also separate and distinct from respite services that [ which ] are provided when the primary caregiver normally would [ normally ] be available.

(5)-(6) (No change.)

(7) Care planning process--A collaborative activity, subject to established time frames that [ , which ] results in the development of an Individual Plan of Care (IPC) and [ which ] requires [ that ] the primary caregiver to pursue all identified resources to be integrated into the IPC with authorized Medically Dependent Children Program ( MDCP ) services.

(8) Centers for Medicare & Medicaid Services (CMS)--An organizational division of the U.S. Department of Health and Human Services that is responsible for approval, monitoring, and oversight of state Medicaid programs.

(9) [ (8) ] Child Care Management System (CCMS)--A child care system administered by the Texas Workforce Commission (TWC) that [ which ] helps eligible parents by giving them more choices in child care [ child-care ] arrangements and by helping them find and pay for qualified caregivers . Qualified caregivers [ , which ] may include child care [ child-care ] centers, registered family homes, or the child's grandparent, aunt, or uncle. TWC [ The Texas Workforce Commission ] establishes payment rates for CCMS-reimbursed child care services based on data analyses of local market costs for child care services.

(10) [ (9) ] Comprehensive child care--A combination of basic child care, other support services mandated by state or federal law, other required program-specific requirements, and approved adjunct supports that [ which ] enable the [ Medically Dependent Children Program ( ] MDCP [ ) ] participant to use child care while the parent is at work, in job training [ job-training ], or at school.

(11) [ (10) ] Cost allowance--The maximum dollar amount available for reimbursement for a participant's approved waiver services . A cost allowance [ , which ] is equal to 63% of the annual amount assigned to the participant's Texas Index for Level of Effort (TILE) designation for skilled nursing facility care as of September 1, 1996. The actual annual dollar amount approved for an individual participant is less than or equal to the participant's cost allowance . [ , ] This amount is determined during the development of the participant's IPC [ individual plan of care ], and is based on factors that include [ including ] the participant's assessed needs and the supports and other resources available to the child.

(12) [ (11) ] Direct care--Hands-on care for or supervision of a participant. Respite and adjunct supports are direct-care services reimbursable through MDCP. [ Direct care services reimbursable through MDCP are respite and adjunct supports. ]

[ (12) Health Care Financing Administration (HCFA)--An organizational division of the United States Department of Health and Human Services that is responsible for approval, monitoring, and oversight of state Medicaid programs.]

(13) Individual Plan of Care [ plan of care ] (IPC)--The instrument used to document the waiver and non-waiver services available to a specific program participant during the specified period of eligibility (typically [ , ] one year), the sources/providers of those services, and the projected cost of the waiver services [ shown on that document ]. The IPC is a separate document from the more detailed documents that [ which ] may elaborate on its implementation.

(14) Interest list--A statewide listing of individual ordered on a first-come, first- served basis who have indicated their interest in participating in the MDCP through submission of the MDCP Interest List Information Form. Inclusion on the interest list does not imply eligibility for MDCP.

(15) [ (14) ] Minor home modification--A physical modification to a participant's home, required by the participant's IPC that [ , which ] is necessary to prevent institutionalization or support deinstitutionalization.

(16) [ (15) ] Participant--An individual who has been determined eligible to receive waiver services and who receives waiver services according to an IPC.

(17) [ (16) ] Primary caregiver--An individual(s) responsible [ with the responsibility ] for a participant's routine daily care and the provision of food, shelter, clothing, health care, education, nurturing, and supervision. Primary caregivers may include but are not limited to parents, foster parents, guardians, or other family members by birth or marriage. A primary caregiver provides daily, uncompensated care for the participant; does not delegate caregiving responsibilities to paid providers a majority of the time; and participates in the development and implementation of the MDCP participant's IPC. Parents, primary caregivers, and members of the participant's household cannot be paid as that participant's provider(s) of MDCP services.

(18) [ (17) ] Provider--An entity that [ which ] has an agreement with DHS [ the department ] to provide authorized waiver services for MDCP participants for compensation according to approved IPCs.

(19) [ (18) ] Qualified individual--An individual who may be eligible to become an MDCP participant under the conditions outlined in §51.3(c) [ §34.3(c) ] of this title (relating to Participant Eligibility Criteria) for skilled nursing facility deinstitutionalization.

(20) [ (19) ] Registrant--An individual whose name has been registered on the MDCP interest [ waiting ] list after DHS [ the department ] has received his Interest List Information Form [ his/her pre-application registration materials ]. A registrant has requested a determination of his [ his/her ] eligibility in order to apply for waiver services.

(21) [ (20) ] Respite--A service that [ which ] provides temporary relief from caregiving to the primary caregiver of a waiver participant during times when the participant's primary caregiver normally would [ normally ] provide care.

(22) [ (21) ] Service array--Home and community-based Medicaid services available to MDCP participants by virtue of their waiver eligibility.

(23) [ (22) ] Texas Index for Level of Effort (TILE)--The system used to quantify the intensity of the care needs of individuals in Texas nursing facilities, and to assign daily reimbursement rates for that care. The Texas Board of Human Services establishes TILE rates. [ TILE rates are established by the Texas Board of Human Services. ]

[ (23) Waiting list--A statewide listing of individuals ordered on a first-come, first-served basis who have indicated their interest in participating in the MDCP through submission of MDCP pre- application registration materials. Inclusion on the waiting list does not imply eligibility for MDCP.]

(24) Waiver--An exception to otherwise applicable requirements. A waiver approved by CMS [ HCFA ] under the Social Security Act, §1915(c), authorizes the MDCP to waive certain Medicaid requirements for the delivery of unique services to a specific population and to use unique requirements for determining program eligibility. The term "waiver" may be equated to "MDCP."

§51.3.Participant Eligibility Criteria.

(a) (No change.)

(b) Participant eligibility. To be a participant of the MDCP, an individual must:

(1)-(5) (No change.)

(6) have a physician's signed approval that attests [ attesting ] that the authorized and other specified services are necessary to avoid institutional placement and are appropriate to meet the participant's needs in the home. The physician-approved Individual Plan of Care [ individual plan of care ] (IPC) must specify health-related care needs and must document waiver services, non-waiver Medicaid services, and any other home and community- based services, as well as services and supports provided by the primary caregiver(s);

(7) have an IPC that [ which ] documents the Texas Department of Human Services' (DHS's) [ Texas Department of Health's (department's) ] plan to authorize and the participant's plan to use [ utilize ] waiver services without an interruption in service delivery of more than 60 days;

(8) have an approved IPC for which the projected annual cost for waiver services does not exceed the established annual waiver service cost allowance. The allocation for direct- care [ direct care ] waiver services (respite services and adjunct supports) for participants who are age 20 is [ will be ] prorated for the participant's remaining eligibility period. DHS [ The department ] may grant exceptions to the cost allowance for respite services or adjunct supports on a temporary basis when extenuating circumstances preclude the development or implementation of an IPC within the cost allowance. In such cases, approval depends [ will depend ] upon DHS's [ the department's ] review of the circumstances of the request; upon the availability of other resources, including family, volunteer, or community resources; and upon the waiver program's financial status. DHS [ The department ] may deny requests for exceptions to the annual cost allowance if vacancies in the waiver are frozen, if the program anticipates a budgetary shortfall, if the primary caregiver does not participate in identifying and pursuing other possible resources that [ which ] must be used before [ prior to ] waiver services, or if the request does not demonstrate that extenuating circumstances exist. A reduction in the annual cost allowance does not in itself constitute an extenuating circumstance. Following a review of the circumstances, DHS [ the department ] determines [ will determine ] which category of exceptional funding is appropriate, as described in subparagraphs (A) and (B) of this paragraph. The specific amount approved within a given category is [ will be ] based on a budget developed to address the extenuating circumstances. Once approved, continuation of funding for each approved exception to the cost allowance is subject to periodic review and renewal.

(A) Category A. DHS [ The department ] may grant an exception to a participant's annual cost allowance not to exceed 10% of the participant's annual cost allowance if the existing extenuating circumstances will likely be resolved within six months.

(B) Category B. DHS [ The department ] may grant an exception to the participant's annual cost allowance under one or more of the special circumstances described in clauses (i)-(iv) of this subparagraph. The total amount allowable for exceptions under Category B may not exceed $5,000. Special circumstances include:

(i)-(iii) (No change.)

(iv) the participant has a severe immunological disorder or a similar medical condition that [ which ] would make child care in a group setting a life-threatening situation; and

(9) meet the following requirements:

(A) (No change.)

(B) the applicant or participant must meet SSI disability criteria and must:

(i) (No change.)

(ii) be an individual under 19 years of age for whom the Texas Department of Protective and Regulatory Services (PRS) assumes financial responsibility, in whole or in part (not to exceed Level II foster-care [ foster care ] payment), and who is being cared for in:

(I) a family foster home that [ which ] is licensed or certified and supervised by PRS; or

(II) a family foster home that [ which ] is licensed or certified and supervised by a licensed public or private nonprofit child-placing agency; or

(iii) be a member of a family that [ which ] receives full Medicaid benefits as a result of qualifying for Temporary Assistance for Needy Families [ temporary assistance to needy families ] (TANF); or

(iv) (No change.)

(c)-(d) (No change.)

(e) Interest [ Waiting ] lists. Participants in the waiver program are selected from the MDCP interest [ waiting ] list, which is maintained on a first-come, first-served basis. The names of Medicaid-eligible, qualified individuals who complete the MDCP Interest List Information Form [ pre-application registration process ] and who are residents of a Texas nursing facility as described in subsection (c) of this section are maintained on a separate interest [ waiting ] list for nursing facility deinstitutionalization. Their participation in the waiver does [ will ] not delay the entry of individuals who are not residents of a Texas nursing facility and whose names are maintained on the regular MDCP interest [ waiting ] list. A registrant's interest [ waiting ] list status is assured unless:

(1) the Interest List Information Form [ pre-application registration materials ] clearly indicates [ indicate ] the individual does not qualify as a candidate for the waiver program; or

(2) the family or the registrant requests that the registrant's name be removed from the interest [ waiting ] list.

(f) (No change.)

(g) Application deadline. If a registrant fails to complete and return all required application materials within 35 calendar days from the date of the application transmittal letter, the registrant's potential application is [ shall be ] closed. In such a case, the registrant's name may be re-entered at the end of the interest [ waiting ] list, upon request. Exceptions may be made following a review of special circumstances.

(h) Eligibility denial and exceptions. Unless an exception is made following a review of special circumstances, waiver eligibility is [ shall be ] denied or terminated if:

(1) waiver services are not used [ utilized ] as described in the IPC, unless:

(A)-(D) (No change.)

(2) the applicant's/participant's [ applicant/participant's ] primary caregiver fails to return a signed IPC within the specified time frame, not to exceed 30 days from transmittal of the unsigned document;

(3) the applicant's/participant's [ applicant/participant's ] primary caregiver does not participate in the eligibility determination process, the care planning process, or the implementation of the IPC;

(4) the applicant's/participant's [ applicant/participant's ] primary caregiver does not comply with the responsibilities enumerated in a departmental form that he [ which he/she ] has signed; or

(5) (No change.)

(i) (No change.)

§51.4.Location of Medically Dependent Children Program (MDCP) Waiver Service Delivery.

MDCP waiver services may not be provided:

(1) (No change.)

(2) in institutional settings, except as specified in §51.5(b)(1) [ §34.5(b)(1) ] of this title (relating to Waiver Services) for MDCP respite services; or

(3) (No change.)

§51.5.Waiver Services.

(a) Relationship of waiver services to other sources of caregiving and support.

(1) Individual Plans of Care [ plans of care ] (IPCs) must include services provided by parents and/or primary caregivers; non-waiver services; and waiver services.

(2)-(3) (No change.)

(4) Waiver services are [ will be ] coordinated with other available resources, including Medicaid state plan services.

(5) Parents/caregivers are [ will be ] responsible for the cost of basic child care.

(A) The cost of basic child care is [ will be ] calculated based on:

(i) (No change.)

(ii) recognized and accepted community-based child care data analyses, for example [ e.g. ], those developed and used [ utilized ] by the Child Care Management System (CCMS) of the Texas Workforce Commission.

(B) The total parental contribution to child care includes the cost of basic child care and may be affected by:

(i) the participant's eligibility for programs such as Head Start or [ for ] the resources of the CCMS; or

(ii) (No change.)

(b) Waiver service array. In addition to Medicaid state plan services, the following services are available to a waiver participant when included in the participant's IPC and when unavailable from other sources:

(1) Respite services. Respite services may be provided by licensed registered nurses (RNs); eligible licensed vocational nurses (LVNs); licensed home and community support services agencies (HCSSAs) that [ which ] provide skilled nursing services; licensed HCSSAs that [ which ] provide personal assistance services with and/or without delegation by an RN [ a registered nurse ]; independently enrolled attendants who meet program participation standards as approved by the CMS [ Health Care Financing Administration (HCFA) ]; host families who meet the requirements for foster homes or who meet other program participation standards as approved by CMS [ HCFA; camps accredited by the American Camping Association ]; licensed child care facilities that [ which ] meet state requirements for respite-care [ respite care ] providers; licensed special-care [ special care ] facilities; licensed nursing facilities; [ and ] licensed hospitals ; and camps accredited by the American Camping Association. For accredited camps, reimbursement rates shall be based on those adopted by the Texas Department of Health (DHS) for the Community Living Assistance and Support Services (CLASS) Waiver program . Providers must operate within the scope of their licensure, accreditation, participation standards, or other applicable regulations.

(2) Adjunct supports. Adjunct supports may be provided either by the MDCP or by sources outside the MDCP waiver, and they may be provided on a one-time basis, on an ongoing basis, intermittently, or as the participant's condition, child care arrangements, or living arrangements change. To support participation in child care, adjunct supports are [ will be ] approved only for those hours when the primary caregiver is working, attending job training, or attending school. Adjunct supports may include, but are not limited to, the following:

(A)-(B) (No change.)

(C) limited modifications to an out-of-home, more inclusive child care setting where such modifications are not required by state or federal law or by program-specific regulation. Such modifications must meet the requirements for minor home modifications described in paragraph (3) of this subsection. Costs for approved modifications made under this subparagraph are not included in the calculation of the participant's lifetime allowance for minor home modifications . Such providers shall be reimbursed based on the lowest bid obtained for the approved modification. If required, administrative fees for coordination of modifications shall be based on the administrative fees established by DHS for coordination of minor home modifications in the Community Based Alternatives (CBA) Waiver program ;

(D) child care-related transportation that [ which ] is not required of the child care provider by state or federal law or by program-specific regulation, or which is not otherwise available in the community . Providers of child care-related transportation shall be reimbursed based upon the lesser of their established fees and the established Medicaid reimbursement rate for a comparable service/provider ; and

(E) (No change.)

(3) Minor home modifications. The MDCP reimburses [ will reimburse ] qualified providers the cost of approved minor home modifications that are necessary to prevent the institutionalization or support the deinstitutionalization of an applicant/participant. For minor home modifications, reimbursement rates shall be based on the lowest of the comparable and responsible bids submitted for the approved modification. Administrative fees shall be based on those adopted by DHS for the CBA Waiver program.

(A) (No change.)

(B) Bids from qualified contractors are [ shall be ] required.

(C) All services are [ shall be ] provided in accordance with applicable state and local building codes.

(D) (No change.)

(E) If alternative solutions exist, DHS approves modifications based on considerations of cost and comparable functionality [ modifications will be approved by the Texas Department of Health (department) based on considerations of cost and comparable functionality ]. If more than one option is available, DHS [ the department ] approves [ will approve ] the amount equivalent to the least costly option of comparable functionality. If the caregiver/participant selects a more costly option, the caregiver/participant is [ shall be ] responsible for any costs that [ which ] exceed those approved by DHS [ the department ].

(F) There is [ will be ] a maximum lifetime allowance of $7,500 for approved minor home modifications. In addition, up to $300 per year is [ will be ] available for repair or replacement of these minor home modifications when such repair or replacement is not covered by warranty. The lifetime allowance is based on the participant's lifetime.

(G) DHS [ The department ] may establish an administrative fee for local agency coordination of these services.

(H) Expenses for minor home modifications, repairs and replacements not covered by warranty, and related administrative fees are [ will be ] budgeted within the participant's annual cost allowance.

(4) Adaptive aids. The MDCP reimburses [ will reimburse ] qualified providers the cost of approved adaptive aids that are necessary to prevent the institutionalization or support the deinstitutionalization of an applicant/participant, that are related to the applicant's/participant's disability, and that have a manufacturer's suggested retail price of $100 or more. Reimbursement rates shall be based on the manufacturer's suggested retail price minus the weighted average percentage discount as authorized by the Texas Medicaid State Plan for providers of durable medical equipment. If the manufacturer does not offer a discount to the provider, the reimbursement rate will be the provider's cost plus a percentage, as authorized by the Texas Medicaid State Plan for providers of durable medical equipment. If bids are required, the reimbursement rate shall be based on the lowest bid obtained for the approved adaptive aid.

(A) (No change.)

(B) The [ There will be a ] maximum annual allowance [ of $4,000 ] for approved adaptive aids is $4,000 . A portion of this amount may be used to support assessment, training, and installation related to the adaptive aids.

(C) (No change.)

(D) Expenses for adaptive aids and related assessment, training, and installation and administrative fees are [ will be ] budgeted within the participant's annual spending allowance for adaptive aids and within the participant's annual cost allowance.

(c) (No change.)

§51.7.Cost Controls and Cost Savings.

(a) If Medically Dependent Children Program (MDCP) expenditures and budgetary considerations and constraints indicate that cost reduction is necessary, the Texas Department of Human Services (DHS) [ Texas Department of Health (department) ] may implement measures to reduce costs. Medicaid eligibility for waiver participants is [ shall ] not [ be ] affected in such circumstances. Cost reduction measures may include, but are not limited to:

(1)-(3) (No change.)

(b) Unspent appropriations to the waiver program are [ shall be ] reinvested directly or indirectly into the waiver program to the extent allowable by state law and departmental rule and policy.

§51.31.Deinstitutionalization Due to Closure of Facility.

(a) An individual who resided in a Texas nursing facility and continued to reside there until scheduled to be discharged from the facility due to its closure may apply for services to support the individual's deinstitutionalization if the individual:

(1) (No change.)

(2) has met all of the criteria in of §51.3(b) [ §34.3(b) ] of this title (relating to Participant Eligibility Criteria).

(b) The names of qualified individuals who apply [ applying ] for nursing facility deinstitutionalization under the Medically Dependent Children Program (MDCP) are [ shall be ] maintained on an interest [ a waiting ] list separate from that for other MDCP registrants.

(c) An individual who applies [ applying ] for nursing facility deinstitutionalization under MDCP becomes [ shall become ] eligible for waiver services under this subsection if:

(1)-(2) (No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 1, 2002.

TRD-200204150

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: August 11, 2002

For further information, please call: (512) 438-3734


40 TAC §51.6

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Department of Human Services or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeal is proposed under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes DHS to administer public and medical assistance programs, and under Texas Government Code, §531.021, which provides HHSC with the authority to administer federal medical assistance funds.

The repeal implements the Human Resources Code, §§22.001-22.036 and §§32.001-32.052.

§51.6.Provider Base and Reimbursement Methodology.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 1, 2002.

TRD-200204151

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: August 11, 2002

For further information, please call: (512) 438-3734


Part 20. TEXAS WORKFORCE COMMISSION

Chapter 809. CHILD CARE AND DEVELOPMENT

The Texas Workforce Commission (Commission) proposes amendments to §§809.92, 809.101, 809.103, and 809.121, relating to Child Care and Development rules.

The purpose of the proposed amendments to §809.92 and §809.121 is to move the reference in §809.92(b)(4) to §809.121. Since the provision in §809.92(b)(4) applies more specifically to eligibility related to children living at low incomes instead of the general eligibility requirements, the Commission is proposing to relocate the provision.

In §809.101, the purpose of the amendments is to encourage the efficient use of child care funds in support of families transitioning off of TANF by removing specific references to education or training components and substituting a broader reference to a "Choices activity" which includes work and employment-related activities as well as education or training components. Additional clarifications are made to update the terms consistent with the terms used in Chapter 811 related to Choices. The updates include changing the terms from "client" to "recipient" and from "component" to "activity." Changes to subsection (d) are made to emphasize that TANF recipients, whose temporary cash assistance has expired must meet the requirements of Chapter 811 to receive transitional child care. A statement is added to subsection (d) to clarify that this provision does not apply to individuals engaged in unsubsidized employment who are eligible under the provisions of §809.101(a)(1). Subsection (e) is added to state that TANF recipients who are engaged in a Choices activity, meeting the requirements of Chapter 811, and denied temporary cash assistance due to receipt of child support, shall be eligible to receive transitional child care services until the date on which the TANF recipient completes the activity, as defined by the Board.

In §809.103, the purpose of the amendments is to clarify the intent of the Commission, which is that Applicants who are employed at the time of application, but continue to be eligible for temporary cash assistance, be referred to a Workforce Orientation for Applicants and be eligible to receive Applicant child care. The phrase "or retain" is added to subsection (a)(1), and subsection (d) is added to clarify the Commission's intent to encourage applicants who are working but continue to be eligible for temporary cash assistance to obtain employment that will enable them to support their families. The amendments emphasize the importance of full-time employment by limiting Applicant child care services to 90 days for applicants who are employed less than 15 hours a week at the time of application unless the hours of employment are increased to a minimum of 30 hours per week before the end of the 90 days. The rule also provides that Applicant child care may be extended to a total of 12 months, inclusive of the 90 days, if the applicant increases the hours of employment to at least 30 hours per week as required in §809.103(d).

Randy Townsend, Chief Financial Officer, has determined that for each year of the first five years the rules will be in effect, the following statements will apply:

There are no additional estimated costs to the state and to local governments expected as a result of enforcing or administering the rules;

There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rules;

There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rules;

There are no foreseeable implications relating to costs or revenue of the state or local governments as a result of enforcing or administering the rules; and

There are no anticipated economic costs to persons required to comply with the rules.

Mr. Townsend has also determined that there is no anticipated adverse impact on small businesses as a result of enforcing or administering the rules because small businesses are not regulated by the rules and no requirements are placed on small businesses by the rules.

James Barnes, Director of Labor Market Information, has determined that there is no significant negative impact upon employment conditions in this state as a result of the proposed rules.

Donna Garrett, Director of Child Care and Development, has determined that for each year of the first five years the rules are in effect, the public benefit anticipated as a result of enforcing the rules will be to set forth the requirements for Choices child care to assist families with becoming self-sufficient.

Comments on the proposal may be submitted to John Moore, Acting General Counsel, Texas Workforce Commission Building, 101 East 15th Street, Room 608, Austin, Texas 78778, (512) 463-3041. Comments may also be submitted via fax to (512) 463-2220 or e-mailed to: John.Moore@twc.state.tx.us. Comments must be received by the Agency within 30 days from the date of the publication in the Texas Register .

Subchapter F. GENERAL ELIGIBILITY FOR CHILD CARE

40 TAC §809.92

The amendments are proposed under Texas Labor Code §301.061 and §302.002, which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Agency services and activities.

The amendments affect Texas Labor Code, Title 4, Texas Human Resources Code Chapters 31 and 34, as well as Texas Government Code Chapter 2308.

§809.92.General Eligibility Requirements.

(a) The eligibility criteria set forth in this chapter are based primarily on the federal and state funding limitations. Nothing in this chapter shall be applied in a manner that conflicts with those limitations and the limitations contained in the use-of-funds provisions in the Commission's child care allocation rule contained in Subchapter B of Chapter 800 of this title (relating to Allocations and Funding).

(b) For a child to be eligible for child care services, the child's parents shall:

(1) have a total gross income that does not exceed 85% of the state median income for a family of the same size;

(2) require child care to [ work or ] participate in training , [ or ] education , or employment activities; and

(3) need the child care for a child under thirteen years of age, unless a different age requirement is indicated in the applicable eligibility rule contained in this chapter . [ ; and ]

[(4) have met the Choices requirements as specified in Chapter 811, or be determined by the Board to need child care to comply with those requirements, if the child's parent is a TANF recipient subject to those requirements.]

(c) For purposes of this chapter, child care is needed to support participation in education for a limited time as determined by the Board.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on June 26, 2002.

TRD-200204020

John Moore

Acting General Counsel

Texas Workforce Commission

Earliest possible date of adoption: August 11, 2002

For further information, please call: (512) 463-2573


Subchapter G. CHILD CARE FOR PEOPLE TRANSITIONING OFF PUBLIC ASSISTANCE

40 TAC §809.101, §809.103

The amendments are proposed under Texas Labor Code §301.061 and §302.002, which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Agency services and activities.

The amendments affect Texas Labor Code, Title 4, Texas Human Resources Code Chapters 31 and 34, as well as Texas Government Code Chapter 2308.

§809.101.Transitional Child Care.

(a) A Board shall ensure that transitional child care services will be provided for children of parents who have been denied temporary cash assistance [ TANF ] because of:

(1) employment and an increase in earnings which results in being ineligible for temporary cash assistance [ TANF payments ], or

(2) expiration of TANF time limits.

(b) Transitional child care shall be available for a period of up to 12 months, depending on income eligibility and whether the person is working, except in the case of an exempt TANF recipient [ client ] who voluntarily participates in the Choices program. For these individuals, transitional child care is available for a period up to 18 months.

(c) TANF recipients [ clients ] who are not employed when temporary cash assistance [ TANF ] expires shall receive up to 4 weeks of transitional child care in order to allow these individuals to search for work as needed. Former TANF recipients must begin utilizing their 4 weeks of transitional child care within 30 days of denial of temporary cash assistance.

(d) TANF recipients [ clients ] who are engaged in a Choices activity [ an education or training component ] that extends beyond the date that temporary cash assistance [ TANF ] expires and who are meeting the requirements of Chapter 811 , may receive transitional child care in order to complete the activity [ component ]. This provision does not apply to individuals engaged in unsubsidized employment who are eligible under the provisions of subsection (a)(1) of this section.

(e) TANF recipients who are engaged in a Choices activity, are meeting the requirements of Chapter 811, and are denied temporary cash assistance due to receipt of child support, shall be eligible to receive transitional child care services until the date on which the individual completes the activity, as defined by the Board.

§809.103.Workforce Orientation Applicant Child Care.

(a) Children are eligible for Applicant Child Care if their parents meet the criteria for eligibility of children living at low incomes, as detailed in §809.121 of this chapter[ , ] (relating to Children Living At Low Incomes), and meet all of the following criteria:

(1) need child care to accept or retain employment;

(2) receive a referral from the Texas Department of Human Services to attend a Workforce Orientation for Applicants; and

(3) locate employment prior to TANF certification.

(b) To receive Applicant Child Care, parents shall not have voluntarily terminated paid employment of at least 30 hours a week within 30 days prior to receiving the referral from the Texas Department of Human Services to attend a Workforce Orientation for Applicants, unless the voluntary termination was for good cause connected with the parent's work.

(c) Subject to the availability of funds and the continued employment of the parent(s), Applicant Child Care shall be provided for up to 12 months or until the family reaches the Board's income limit for eligibility, whichever occurs first. [ Subject to the availability of funds, children who are otherwise eligible for at-risk child care and whose time limit for Applicant child care has expired, may be continued in care subject to the Board's policies for at-risk child care. At-risk care includes eligibility under any provision contained in Subchapter H. of this title relating to Children of Parents at Risk of Becoming Dependent on Public Assistance. ]

(d) Parents who are employed less than 15 hours a week at the time they apply for temporary cash assistance are limited to 90 days of Applicant Child Care. Applicant Child Care may be extended to a total of 12 months, inclusive of the 90 days, if before the end of the 90-day period, the applicant increases the hours of employment to a minimum of 30 hours a week.

(e) Subject to the availability of funds, children who are otherwise eligible for at-risk child care and whose time limit for Applicant Child Care has expired, may be continued in care subject to the Board's policies for at-risk child care. At-risk care includes eligibility under any provision contained in Subchapter H of this title relating to Children of Parents at Risk of Becoming Dependent on Public Assistance.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on June 26, 2002.

TRD-200204021

John Moore

Acting General Counsel

Texas Workforce Commission

Earliest possible date of adoption: August 11, 2002

For further information, please call: (512) 463-2573


Subchapter H. CHILDREN OF PARENTS AT RISK OF BECOMING DEPENDENT ON PUBLIC ASSISTANCE

40 TAC §809.121

The amendments are proposed under Texas Labor Code §301.061 and §302.002, which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Agency services and activities.

The amendments affect Texas Labor Code, Title 4, Texas Human Resources Code Chapters 31 and 34, as well as Texas Government Code Chapter 2308.

§809.121.Children Living at Low Incomes.

Children living at low incomes are eligible for child care if:

(1) the family income does not exceed 85% of the state median income for a family of the same size; or

(2) the parents of the children are receiving temporary cash assistance [ TANF ] or Supplemental Security Income ; and [ . ]

(3) the parents receiving temporary cash assistance have met the Choices requirements as specified in Chapter 811 of this title, or have been determined by the Board to need child care to comply with those requirements, if the parents are subject to those requirements.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on June 26, 2002.

TRD-200204022

John Moore

Acting General Counsel

Texas Workforce Commission

Earliest possible date of adoption: August 11, 2002

For further information, please call: (512) 463-2573